Emerging-market stocks rose a second day as the European Union promised emergency aid to Ukraine while U.S. and Russian diplomats held talks. The Standard & Poor’s 500 Index held near a record while oil declined.
The dollar fell against the euro in the last month as negative data surprises out of the U.S. compared unfavorably with positive data surprises from the euro region, according to Deutsche Bank AG’s Jim Reid.
The creation of the Federal Reserve 100 years ago helped develop a new world of investing in which bond returns fell, and the start of its next century may also mark a new era in monetary policy making, says Deutsche Bank AG.
The Standard & Poor’s 500 Index rose following its first three-day slump since September, as gasoline and oil rallied while gold and silver slid. Emerging market stocks fell as a gauge of Chinese manufacturing missed estimates and the Federal Reserve said it may reduce stimulus.
European stocks rose to a six-month high this week as the Federal Reserve announced another round of bond purchases to boost the economy, offsetting renewed concern that some European countries won’t be able to repay their debts.
U.S. and European stocks fell, driving the Dow Jones Industrial Average down from an almost four-year high, and the euro declined the most in three weeks as Greek leaders wrestled with spending cuts to get aid and avert a default. German bonds rose, and commodities dropped.
Bonds of issuers worldwide from Morgan Stanley to the Spanish government have erased losses for 2013 as reports of the death of the three-decade bull market in the securities prove premature with the Federal Reserve maintaining its stimulus.
U.S. stocks fell, following the Standard & Poor’s 500 Index’s biggest weekly gain since June, as lawmakers prepared to debate the so-called fiscal cliff and euro-area finance ministers discuss Greek aid.
Germany and France are among top- rated euro-area states that may compromise their AAA grades by standing behind the debts of weaker members with their 750 billion-euro ($955 billion) stabilization fund.